Claiming Tax Deductions on Children’s Tuition Fees Under the Old Tax Regime

Under the previous income tax system, parents could claim deductions for their children’s tuition at school and college, which would drastically lower their tax burden. Those that choose the new tax system for the fiscal year 2025–2026 might need to reevaluate their tax-saving measures nonetheless.

Old Tax Regime vs. New Tax Regime: What You Need to Know

Finance Minister Nirmala Sitharaman made yearly salaries up to ₹12 lakh tax-free under the new tax system, which the Indian government implemented in the Union Budget 2025. Many people could be persuaded to convert to the new system by the updated tax slabs. Those who want tuition deductions, however, will have to continue using the previous system because the new one does not offer these advantages.

Claiming Tuition Fee Deduction Under Section 80C

Taxpayers may deduct up to ₹1.5 lakh per year from a variety of investments, including tuition for schools and colleges, under Section 80C of the Income Tax Act of 1961. Since most parents naturally experience these costs, this benefit is straightforward to claim and extends to up to two children per taxpayer.

Eligible and Ineligible Expenses for Deduction

Tuition deductions are available to parents whose children are enrolled in schools, colleges, creches, nurseries, and playschools. Nevertheless, the following costs are not deductible from taxes:

• Institutions receiving donations or capitation fees
• Transportation costs (like those for school buses)
• Private tuition costs, coaching class fees, or hostel prices

How to Claim Tuition Fee Deduction?

Taxpayers must get a document from the educational institution attesting to the total amount of tuition paid during the fiscal year to claim this deduction. Requesting the certificate after completing the last payment is advised because many institutions collect annual fees by January.

• Salaried Workers: For tax deduction purposes, employers frequently ask for documentation of tuition fee payments made by the middle of January.
• Self-Employed People Or Entrepreneurs: When submitting the Income Tax Return (ITR) for the fiscal year, deductions may be claimed.